Singapore Exchange to Launch Short-Term Interest Rate Derivatives

Dow Jones03-12

By P.R. Venkat

Singapore Exchange plans to launch short-term interest rate derivatives to cater to a market increasingly seeking to hedge in an uncertain rate environment.

The exchange will introduce short-term rate futures linked to the Singapore Overnight Rate Average and the Tokyo Overnight Average Rate, which would allow investors to hedge and trade fluctuations in interest rates in a cost-effective manner, SGX said Tuesday.

The exchange operator aims to launch the three-month SORA and TONA futures contracts in the second half of this year.

SGX said the planned move also follows market expectations that Japan's negative rate policy will end, as well as rising interest in the world's third-largest government bond market, and record highs in the Nikkei 225 equity benchmark.

The three-month TONA futures will complement SGX's portfolio of Japanese derivatives, including Japanese government bond futures, Nikkei 225 Index futures and options, and USD/JPY foreign-exchange futures.

Meanwhile, SORA futures will be a new hedging tool for market participants to manage their exposure to interest-rate risks amid growing issuance of SGD cash market products referencing SORA.

"The uncertain interest rate environment, coupled with inflation and volatility in the macroenvironment, has increased the appeal and usage of interest rate derivatives as a cost-effective, transparent hedging and trading tool," said KC Lam, SGX's global head of FX & rates.

Write to P.R. Venkat at venkat.pr@wsj.com

(END) Dow Jones Newswires

March 11, 2024 20:16 ET (00:16 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.

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Venkat \n</p>\n<pre>\n \n</pre>\n<p>\n  Singapore Exchange plans to launch short-term interest rate derivatives to cater to a market increasingly seeking to hedge in an uncertain rate environment. \n</p>\n<p>\n  The exchange will introduce short-term rate futures linked to the Singapore Overnight Rate Average and the Tokyo Overnight Average Rate, which would allow investors to hedge and trade fluctuations in interest rates in a cost-effective manner, SGX said Tuesday. \n</p>\n<p>\n  The exchange operator aims to launch the three-month SORA and TONA futures contracts in the second half of this year. \n</p>\n<p>\n  SGX said the planned move also follows market expectations that Japan's negative rate policy will end, as well as rising interest in the world's third-largest government bond market, and record highs in the Nikkei 225 equity benchmark. \n</p>\n<p>\n  The three-month TONA futures will complement SGX's portfolio of Japanese derivatives, including Japanese government bond futures, Nikkei 225 Index futures and options, and USD/JPY foreign-exchange futures. \n</p>\n<p>\n  Meanwhile, SORA futures will be a new hedging tool for market participants to manage their exposure to interest-rate risks amid growing issuance of SGD cash market products referencing SORA. \n</p>\n<p>\n  \"The uncertain interest rate environment, coupled with inflation and volatility in the macroenvironment, has increased the appeal and usage of interest rate derivatives as a cost-effective, transparent hedging and trading tool,\" said KC Lam, SGX's global head of FX &amp; rates. \n</p>\n<pre>\n \n</pre>\n<p>\n  Write to P.R. 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Venkat \n\n\n \n\n\n  Singapore Exchange plans to launch short-term interest rate derivatives to cater to a market increasingly seeking to hedge in an uncertain rate environment. \n\n\n  The exchange ...</p>\n\n<a href=\"https://dowjonesnews.com/newdjn/logon.aspx?AL=N\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"FSTAS.SI","symbol_name":"富时海峡全股指数","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2418465293","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2418465293","pubTimestamp":1710202560,"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"Singapore Exchange plans to launch short-term interest rate derivatives to cater to a market increasingly seeking to hedge in an uncertain rate environment.The exchange will introduce short-term rate futures linked to the Singapore Overnight Rate Average and the Tokyo Overnight Average Rate, which would allow investors to hedge and trade fluctuations in interest rates in a cost-effective manner, SGX said Tuesday.The exchange operator aims to launch the three-month SORA and TONA futures contracts in the second half of this year.SGX said the planned move also follows market expectations that Japan's negative rate policy will end, as well as rising interest in the world's third-largest government bond market, and record highs in the Nikkei 225 equity benchmark.The three-month TONA futures will complement SGX's portfolio of Japanese derivatives, including Japanese government bond futures, Nikkei 225 Index futures and options, and USD/JPY foreign-exchange futures.Meanwhile, SORA futures wil","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"FSTAS.SI":"富时海峡全股指数","SG9999001135.SGD":"United ASEAN Fund SGD","BK6523":"ESG概念","BK6033":"金融交易所和数据","SG9999000343.SGD":"Schroder Singapore Trust A Dis SGD","S68.SI":"新加坡交易所","FSTM.SI":"富时海峡中盘指数","ES3.SI":"STI ETF","LU0831103253.SGD":"JPMorgan Funds - Asia Pacific Income A (mth) SGD","LU0898667661.SGD":"JPMorgan Funds - Asia Pacific Income A (mth) SGD-H","SG9999016042.SGD":"Schroder Singapore Trust A Acc SGD","SG9999004360.SGD":"Nikko AM Shenton Thrift Fund SGD","STI.SI":"富时新加坡海峡指数","LU0205439572.USD":"富达亚太股息基金","BK6516":"银行与投资服务概念"},"translate_title":"新加坡交易所将推出短期利率衍生品","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"S68.SI":1,"ES3.SI":0.6,"FSTAS.SI":0.6,"FSTM.SI":0.6,"STI.SI":0.6},"content_text":"By P.R. Venkat \n\n\n \n\n\n  Singapore Exchange plans to launch short-term interest rate derivatives to cater to a market increasingly seeking to hedge in an uncertain rate environment. \n\n\n  The exchange will introduce short-term rate futures linked to the Singapore Overnight Rate Average and the Tokyo Overnight Average Rate, which would allow investors to hedge and trade fluctuations in interest rates in a cost-effective manner, SGX said Tuesday. \n\n\n  The exchange operator aims to launch the three-month SORA and TONA futures contracts in the second half of this year. \n\n\n  SGX said the planned move also follows market expectations that Japan's negative rate policy will end, as well as rising interest in the world's third-largest government bond market, and record highs in the Nikkei 225 equity benchmark. \n\n\n  The three-month TONA futures will complement SGX's portfolio of Japanese derivatives, including Japanese government bond futures, Nikkei 225 Index futures and options, and USD/JPY foreign-exchange futures. \n\n\n  Meanwhile, SORA futures will be a new hedging tool for market participants to manage their exposure to interest-rate risks amid growing issuance of SGD cash market products referencing SORA. \n\n\n  \"The uncertain interest rate environment, coupled with inflation and volatility in the macroenvironment, has increased the appeal and usage of interest rate derivatives as a cost-effective, transparent hedging and trading tool,\" said KC Lam, SGX's global head of FX & rates. \n\n\n \n\n\n  Write to P.R. 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